GYMB: Children + Christmas + No Competition + Buyback = $$$$

The holiday season is coming up and children everywhere are wanting presents. As any person would know, holidays=spending=field day for retails... good retails. Gymboree is one of these good retails. It sells children's clothing - not teenage clothing, children as in under 12. So why is Gymboree so much better than any of the other clothing companies? Well, first of all, Gymboree is one of only three major companies in the children's clothing business. The teen and adult apparel industry have a significantly greater competition. The CHILDREN's clothing business however, is mainly taken by Gymboree, The Children's Place, and Gap. The Children's Place last year was a big competitor. This year, it has fallen apart. Note for example, the approximately 50% in price. It also has recently undergone CEO changes which usually cause chaos hence this means it is not as prepared as Gymboree for the upcoming holiday season. Gap on the other hand is also not a big competitor. Gap is so diversified, it is a player in all age groups and thus does not put a great deal of attention on the children's clothing. Furthermore, the Gap brand name isn't becoming much more popular. So we see that Gymboree is clearly at the top of the children's clothing market. It is basically in a position to completely dominate this holiday. But of course, speculations such as this are never a good investments without some solid foundations. Gymboree has a very good balance sheet and income statement. The February 10-K reveals that last year's net income was almost double that of the year before. Furthermore, its short term assets can cover its long term liabilities by almost 1.5 fold. Its most recent 10-Q shows that at the end of 13 weeks August, its net income was 10 times that of the year before. At the end of 26 weeks August, its net income increased 45%. This is the momentum growth that will help shoot Gymboree over the top during this holiday season. Finally, as if that weren't enough reason to buy the stock, the company just announced earlier last week that they would increase their share-buyback program. They had just completed a 50 million dollar buy back and now they are going for another 25 million dollar buy back. Sometimes buybacks are just used to boost share prices... but in Gymboree's case, its solid foundations and its renewal of a buyback program shows the confidence the company has in itself. Gymboree is the stock to have for this season. It's position to dominate, lack of competition, solid fundamentals, and buyback program are three reasons why this stock will soar.